The Estonian Private Equity and Venture Capital Association (EstVCA)

EstVCA: The challenge is to attract private capital from other countries into Estonian funds

18.11.2024.
Tallinn, Estonia – The Estonian Private Equity and Venture Capital Association (EstVCA), which is the representative body of private equity and venture capital industry players and related support service providers in Estonia, marked 15 years of operations yesterday. During this time it has evolved from a few individual funds with 70 million euros in capital into an internationally competitive industry with assets exceeding 3 billion euros.

Margus Uudam, who has been involved in EstVCA since the start and who today is a member of its management board, says that a mature, ambitious, broad-reaching and highly professional private equity and venture capital sector has developed in Estonia over the last 15 years.

“Years back, the very first management board set itself the goal of advancing our private and venture capital industry and fostering a culture of ambitious entrepreneurship in Estonia, learning from the experience of other countries and serving as a meaningful and reliable partner to the state in supporting innovation,” he explained. “Since then, we’ve done what we set out to and come a long way. A good example is the establishment of the Baltic Innovation Fund, which was the result of cooperation between Estonia, Latvia and Lithuania, the EIF and the private and venture capital sectors. Another is our boosting of the competitiveness of the New Nordic region and its marketing on dominant markets in Europe and other parts of the world.”

Today, the private equity and venture capital funds operating in Estonia are expanding their international reach by investing in the Baltic States, the Nordic countries and more distant markets from Africa to Asia. The private equity and venture capital industry manages over 3 billion euros in assets in Estonia. Local funding supports start-ups even in difficult times, with close to 73 million euros invested in Estonian companies last year.

Kaari Kink, who chairs the management board of EstVCA, says the private equity and venture capital sector in Estonia is in healthy shape and is a key contributor to the national economy. “Over the last decade and a half, our funds have demonstrated how professional and resilient they are in all economic cycles, maintaining their composure during boom times and keeping a level head during downturns,” she said. “And we still have plenty of ambition. The challenges we’re facing at the moment include attracting private capital from other countries into local funds, and further expanding the international reach of our funds.”

Ever since it was founded, EstVCA has aimed to foster the local private equity and venture capital market in close cooperation with the state and market participants. Over the years it has also contributed significantly to the creation of a transparent regulatory environment.

More recently, EstVCA’s focus has been on boosting international cooperation, bringing investment communities in the New Nordic region together, further developing the regulatory environment and launching education and training programmes in cooperation with universities and Nordic foundations. Over the years, EstVCA’s management team have also involved themselves in the activities of the European Private Equity and Venture Capital Association, also known as Invest Europe, so as to contribute to the analysing and resolving of pan-European challenges.

About EstVCA:

The Estonian Private Equity and Venture Capital Association (EstVCA) is the representative body of private equity and venture capital industry players and related support services providers in Estonia. Today, EstVCA represents the most influential firms and decision-makers across the industry, comprising leading Private Equity & Venture Capital, Mezzanine, Real Estate and Infrastructure funds, Family Offices, and institutional investors as well as various advisors active in the field. 

www.estvca.ee